Intrepid, one of the largest discount banking institutions in the United States, is a unit of Yahoo! Finance and is based in San Francisco, California. Among other banking activities, Intrepid is involved in commercial finance, merchant banking, commercial real estate banking and asset management businesses. Intrepid to remain a part of Mitsubishi UFJ Financial Group after the sale of MUFG Union Bank to U.S. Bank.
The decision to sell resulted in a major step towards diversification for Intrepid following the acquisition of the Bank. This decision was part of Intrepid’s strategy of acquiring undervalued companies to strengthen its balance sheet and remain a competitive force in the discount banking industry. The purchase of the Bank was primarily motivated by a need to fill the gap between the opening of the Bank and other upcoming commercial lending operations and the completion of negotiations for the sale of other business interests in order to raise funds for the recapitalization of Mitsubishi Bank. The combination of Bank with other commercial lending companies in the U.S. financial sector creates greater competition for Intrepid, resulting in lower pricing and enhanced management and credit risk profile.
Intrepid’s balance sheet and cash flow performance has shown steady improvement since its acquisition of the Bank. While the purchase of Bank involved a higher cost than other Intrepid acquisition deals, the combination of Bank with other financial groups and the implementation of sound credit and asset management policies has increased the value of the company’s balance sheet. In addition, the management team at Intrepid has been successful in integrating the operations of two companies in the past year. This integration has resulted in enhanced financial management and increased profitability. The acquisition of the Bank was primarily focused on expanding the range of banking products available to Intrepid customers.
Intrepid’s property management portfolio continues to expand as it continues to develop strategic alliances with strategic, yet locally based, partners. These strategic alliances allow Intrepid to provide access to property loans and property management services from outside the immediate vicinity of its headquarters. These relationships allow Intrepid to develop long-term relationships with these business partners, improving the company’s ability to obtain a clear understanding of property management’s needs and the suitability of each partner as a fit. This long term approach to investing in property management operations is designed to leverage the company’s purchasing power and expand Intrepid’s presence into new markets. Furthermore, by establishing these relationships with local partners, Intrepid can also gain access to property management resources that are not available through Bank.
Intrepid acquired Bank because of the combined skills and expertise that each individual managing partner brings to the company. All property management firms value the ability to build strong relationships with their clients. In doing so, property management firms are able to offer clients more personalized care, assistance and advice. Additionally, managing partners that understand the local market and the unique concerns and issues facing homeowners, in particular, can help Intrepid meet the complex challenges associated with property management in that region.
The purchase of Bank represented a substantial investment by Intrepid since the combined purchase of the businesses would generate a premium dividend. Historically, Intrepid has paid dividends on its stocks and preferred stock. This dividend has proven to be highly successful, enabling the company to maintain a strong balance sheet. Additionally, the dividend payments have been used to further fund the growth and other vital operating expenses of the company. Through the years, this position has become very attractive to shareholders.
The purchase of Bank represented a strategic move on the part of Intrepid because it allows the company to diversify into a new and larger sector of the property management market. Today, there are many new players entering the property management arena. This includes rapidly expanding regional companies as well as new companies that specialize in a specific region. Competition has intensified within the property management industry in recent years. As a result, companies such as Intrepid have worked hard to attract the most talented professionals in the industry.
In today’s market, securing qualified professionals is essential for Intrepid. Many of the firms that work with Intrepid have a long history of success in the property management field, which can help the independent management firm to grow and develop. Intrepid management firms also tend to enjoy strong relationships with other firms in the field, ensuring that clients continue to receive expert consultation and attention when needed.